EU calls for GM crisis meeting

Marketplace Staff Mar 6, 2009
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EU calls for GM crisis meeting

Marketplace Staff Mar 6, 2009
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TEXT OF STORY

BILL RADKE: General Motors warned of possible bankruptcy, and its shares closed at $1.86. That bankruptcy warning not only shook up the markets,
but governments all over the world. The head of the European Union is now calling for a crisis meeting of the member states that have GM factories.

Christopher Werth reports from London.


CHRISTOPHER WERTH: GM has been approaching individual European governments for rescues of its subsidiaries. But the EU’s industry commissioner said yesterday “enough is enough.” He called on GM to be transparent with Brussels on how its European facilities would be impacted by cost reductions.

Ministers agreed yesterday there would be no EU-wide bailout of the automaker. Michael Tyndall is an analyst with Nomura Securities in London. He says whether it’s rescued or not, GM hasn’t proved it can be profitable in the future.

MICHAEL TYNDALL: I really hope that these politicians don’t lose sight that they are the custodians of the taxpayers’ money, and at the end of the day they have to make the decision whether or not saving jobs in the near-term is a good investment for the long term.

No date has been set, but talks would include Germany, Britain and other countries with GM factories. The company directly employs approximately 55,000 people in Europe.

In London, I¹m Christopher Werth for Marketplace.

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